$\begin{array}{l}\displaystyle \mbox{NPV} = - \mbox{I}_0 + \mbox{DCF} = - \mbox{I}_0 + \sum_{i=1}^n \frac{\mbox{FCF}_i}{(1+r)^i} = \sum_{i=0}^n \frac{\mbox{FCF}_i}{(1+r)^i}\end{array}$

$\begin{array}{l}\displaystyle \mbox{FCF}_i = (\mbox{NETBACK}_i - \mbox{OPEX_i) \cdot \mbox{TAX}_{income}\end{array}$

$\begin{array}{l}\displaystyle \mbox{NETBACK}_i = \mbox{REV}_i * \mbox{TAX}_{SLS}\end{array}$

$\begin{array}{l}\displaystyle \mbox{OPEX}_i = \mbox{COGS}_i + \mbox{SAGS}_i\end{array}$

$\begin{array}{l}\displaystyle \mbox{COGS}_i = \mbox{q}_i * \mbox{C/q}\end{array}$

$\begin{array}{l}\displaystyle \mbox{REV}_i = \mbox{q}_i * \mbox{R/q}\end{array}$

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See also

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Production NPV

See also